Hedge funds? Better the devil you know
Two of the world’s biggest pension funds have decided that hedge funds do not represent value for money and are too complex to monitor. The hedge fund universe has had its worst year since 2011 which has triggered Calpers in the US and PFZW, the Dutch healthcare workers’ pension fund and Europe’s second largest in asset size, to cull their exposure. They felt that performance did not justify fees and were critical of the attitude of the industry towards society and the environment. MASECO also avoids hedge funds and we are comfortable with the decision – costs matter to your bottom line return and hedge funds are expensive vehicles. Finally, if you don’t know how the “black box” is investing your money then the investment journey could be a scary ride, especially in a market downturn. Over an investment time horizon we truly believe in our evidence based approach for our clients’ funds.